2013 New York Consolidated Laws
ISC - Insurance
Article 13 - (1301 - 1325) ASSETS AND DEPOSITS
1311 - Impairment of a mutual or reciprocal insurer.

 
    §  1311.  Impairment  of  a  mutual or reciprocal insurer. (a) In this
  section "required surplus" includes  any  guaranty  surplus  or  special
  contingent  surplus  or other specifically reserved surplus account of a
  domestic mutual insurer, a domestic  reciprocal  insurer  or  any  other
  domestic  insurer  without  capital stock, required by the provisions of
  this chapter to be maintained for any purpose, including:  (i)  issuance
  of   non-assessable  policies,  (ii)  payment  of  dividends,  or  (iii)
  transaction  of  business  after  a  license  has  been  issued  by  the
  superintendent.
    (b)  Whenever  the  superintendent finds from a financial statement or
  report on examination that the total  admitted  assets  of  any  insurer
  required  to  maintain such required surplus are less than the aggregate
  amount of its liabilities and required surplus, he shall  determine  the
  amount  of such impairment and order the insurer or its attorney-in-fact
  to eliminate such impairment  within  such  period  he  designates,  not
  exceeding  ninety  days from service of such order. He may also by order
  prohibit such insurer, while such impairment exists, from:
    (1) issuing any non-assessable policies if its  required  surplus  for
  the purpose of item (i) of subsection (a) hereof is impaired, or
    (2)  paying  dividends if its required surplus for the purpose of item
  (ii) of subsection (a) hereof is impaired, or
    (3) issuing new policies if its minimum surplus  for  the  purpose  of
  item (iii) of subsection (a) hereof is impaired.
    (c) If the impairment so determined is such that such insurer does not
  have  the  minimum  surplus  required  for  item (iii) of subsection (a)
  hereof, and if when such designated period expires the insurer  has  not
  satisfied  the  superintendent that such impairment has been eliminated,
  the superintendent may proceed against  such  insurer  pursuant  to  the
  provisions  of  article  seventy-four of this chapter on the ground that
  its  further  transaction  of  business  will  be   hazardous   to   its
  policyholders, its creditors or the public.
    (d)  If  the required minimum surplus of any authorized foreign mutual
  or reciprocal insurer is found by the superintendent to be impaired, the
  superintendent may order such insurer not to issue during such  time  as
  he  prescribes any new policies in this state, and may, after notice and
  hearing, revoke its license to do business in this state.